MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

 

OF THE

 

ARABIAN ACRES METROPOLITAN DISTRICT   

 

Held:      Friday, May 19, 2006 at 7:00 p.m. at 4455 Fountain Avenue, Cascade, CO.

 

Attendance

 

 

The regular meeting of the Board of Directors of the Arabian Acres Metropolitan District was called and held in accordance with the statutes of the State of Colorado.  The following Directors were in attendance:

 

Dennis S. Yoder

Gene L. Billings

Radford K. Walker

Sandy D. Zuniga

 

Also present: Ken Rupp, private District Consultant, Terry Malcom, Administrator for the District, and Jenny James, the District’s recorder of minutes.

 

Director Biondo was excused due to a family emergency pursuant to 32-1-905(1) (g), C.R.S.

 

 

Call to Order

Director Yoder noted that a quorum was present and called the regular meeting of the Board of Directors of the Arabian Acres Metropolitan District to order at 7:05pm.

 

 

Disclosure Matters

Director Yoder asked the Board to confirm that no changes have occurred to any of the Directors’ interests that warrant amending the written disclosures on file with the Secretary of State’s Office with regard to any potential conflicts of interest.  Pursuant to Colorado law, certain disclosures may be required prior to taking official action at the meeting.  The Board reviewed the agenda for the meeting, following which each Board member disclosed their conflicts of interest, stating the fact and summary nature of any matters, as required under Colorado law, to permit official action to be taken at the meeting.

 

 

Public Comment

No public comment was received.

 

 

Approval of Minutes

 

The minutes of the regular meeting of the Board of Directors held April 21, 2006 were read, and upon motion duly made, seconded and unanimously carried, were approved. 

 

 

Financial Matters

 

 

 

 

 

 

 

 

 

 

 

 

Mr. Malcom reviewed the monthly financial statements and expenses with the Board.  The income budget statement was also discussed.

 

Discussion ensued regarding several accounts that were delinquent.  There are four accounts totaling $3700 on the past due list.  The list is up-to-date as of today.  The deadline is May 23, 2006.  Old collections are coming in.  The updated AR balance is $9700.

Discussion ensued regarding the upcoming audit.  Director Biondo and Mr. Malcolm will put together reconciliations and bank statements.  Auditors must receive information by June 30, 2006.  The current account balance is $31,308.17.  The next bond payment is in June.  The current account balance at Zion County Trust is $22,271.52.

A motion was made to accept the financials as presented.  The motion was seconded, unanimously carried and was approved.

 

 

 

Administrator’s Report

Discussion ensued regarding water usage.  There is about a 50% water loss; over a two month period.  A meter check will be conducted to see if meters are performing correctly.

 

 

Operator’s Report

 

Mr. Barwick, the District’s water system operator was not present to give the Operator’s Report.

 

Discussion ensued regarding Wells #3 and #4.  Well #4 has been shut down pending the Board’s approval to replace the pump.  There was further discussion regarding the Operator being able to purchase items up to $500 without the Board’s approval and that the pump would fall into this category.  Well #4 is a priority and well #3 is a major concern.  Well #3 operates on timers and should be monitored on a regular basis.

 

Mr. Rupp stated the ID badges for the Operators have been completed.  He also stated corrections to the monitoring plan were given to Chris Stroll and that water quality is not an issue.

 

Attorney’s Report

None Given

 

Consultant’s Report

 

Mr. Rupp confirmed no additional movement on any of the easements or the water decree.  He hopes to resume progress soon.

 

Other Business

 

 

 

 

 

New Directors are to be elected at this meeting and Director Yoder opened the floor for nominations.  After discussion, the following Directors will serve in these offices:  Director Billings as President, Director Biondo as Treasurer and Director Zuniga as Secretary.  This motion was seconded and it was carried unanimously with no discussion.  Oaths were signed by the new Board Directors.

 

Discussion ensued regarding liability insurance for the Water Operators.   Mr. Barwick has been working on this issue since January.  He has also not completed his LLC.  Mr. Barwick is out of compliance for not having any insurance during the time he has worked for the District.  The cost for liability insurance is $5,500 for one year with an initial payment of $1,956.  The Board discussed paying 2/3 of the initial insurance payment and recapping it back. 

 

There was also discussion regarding Mr. Barwick’s performance.  A subcommittee consisting of Director Billings and Mr. Ken Rupp will be formed to sit down with Mr. Barwick to go over what is expected of him and setting up a timeline regarding preventive maintenance and maintenance.

 

There was a motion that the Board pay, $652, 1/3 of the first 3 months liability insurance payment, for Mr. Barwick, and that he be given one week to pay the difference.  In addition, Mr. Barwick will be instructed on issues that need to be immediately remedied regarding maintenance.  If after one week Mr. Barwick does not comply and pay the rest of his liability insurance, he will automatically receive a notice of default.  If he does comply, a counseling session will be set up regarding his performance.  The motion was seconded, unanimously carried, and was approved.

 

The Board discussed whether the District would have to bid a new contract if over $25,000 if the current water contractor was let go.  Further discussion will be continued at the next meeting.

 

Discussion ensued regarding sending a demand letter to AquaTest for history files of the district in a format that can be opened.  Mr. Rupp will come up with a specific list of items to be included in the demand letter and will give it to Ms. Fritsche of Seter and Vander Wall, P.C. the District’s legal counsel.

 

An e-mail was received from Joan Fritsche of Seter and Vander Wall, P.C. regarding Dawn Schilling’s commitment letter.  An Accountant is needed by law for the District.  There is a firm bid on Ms. Shilling and she has worked with other Districts.  She charges a fee of $75 an hour.  Ms. Shilling will work on the budget and bond issues.  If more than 20 hours are worked, the Board needs to approve it.

 

A motion was made to contract with Dawn Shilling to be the accountant.  Any amount of time over 20 hours or $1500 must be approved by the Board President.  Any amount of time over $3,000 must have Board approval.  The motion was seconded, unanimously carried and approved.

 

A motion was made that the amount the President could approve for spending on emergencies would be $1,000.  Anything over that would require the Board’s approval.  The motion was seconded, unanimously carried and approved.

 

Discussion ensued regarding Tap transfer fees. Currently, the tap goes with the lot bought. Taps cannot be transferred to different properties. Further discussion will be conducted at future meetings.

 

Out of 305 Newsletters sent out, only 15-20 were returned because of no such street addresses, when in actuality, it was the correct address.

 

Adjournment

There being no further business to come before the Board, and upon motion duly made, seconded and unanimously carried, the meeting was adjourned at 9:55 PM.  Next Meeting:  June 16, 2006

 

 

 

                   _________________________________________

                              Secretary for the Meeting